National Government debt reaches P11T as of end-April 2021 – Treasury

The National Government’s (NG) total outstanding debt stood at P10,991.32 billion as of end-April 2021.

For the month, the NG’s total debt portfolio increased by P217.49 billion or 2.0% from its end-March 2021 level due to the net availment of both local and external financing. Of the total debt stock, 28.9% was sourced externally while 71.1% are domestic borrowings.

NG domestic debt amounted to P7,812.39 billion, which is P67.78 billion or 0.9% higher compared to the end-March 2021 level primarily due to the net issuance of government securities. From the end-December 2020 level, outstanding domestic debt has increased by P1,117.70 billion or 16.7%.

NG external debt of P3,178.93 billion was P149.71 billion or 4.9% higher from the previous month. For April, the increment to external debt was due to the net availment of foreign loans amounting to P163.01 billion including P146.16 billion from the issuance of Global Bonds.

Further adjustments include the impact of third-currency appreciation against the US dollar which added P10.91 billion while local-currency appreciation trimmed P24.21 billion. From the end-December 2020 level, NG external debt has increased by P78.61 billion or 2.5%.

National Government debt reaches P11T as of end-April 2021 – Treasury

Total National Government guaranteed obligations decreased by P1.07 billion or 0.2% month-overmonth to P434.74 billion in April. The lower level of guaranteed debt was due to the net redemption of both local and foreign guaranteed obligations amounting to P0.75 billion and P0.08 billion, respectively.

Local-currency exchange rate fluctuations further lowered the peso value of external guaranteed debt by P1.57 billion while third currency appreciation added P1.33 billion to the peso value of guarantees.

In April, the national government’s fiscal balance yielded a narrower deficit of P44.4 billion on the back of increase in collection during the period.

“The need to finance the purchase of more COVID-19 vaccines would also lead to some pick up in government borrowings/debt; as the commercial purchases for COVID-19 vaccines would be recurring in in the foreseeable future,” Ricafort said.

In particular, domestic debt totaled P7.812 trillion, 0.9% higher than end-March’s P7.744 trillion “primarily due to the net issuance of government securities.”

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